Csquare Inc (CSQR) Stock Forecast & Price Target

Csquare is supported by a rare combination of record operating momentum and improving capital efficiency, with 3Q26 bookings of $66.1MM, annualized revenue backlog rising to $114MM from $76MM, revenue of $302.3MM, and Adjusted EBITDA of $132.1MM versus expectations. The company’s positive outlook is reinforced by enterprise demand exceeding supply, accelerating pricing, 25% Y/Y higher metered power pricing, and a 17.1% renewal spread, all of which should feed through to EBITDA with limited incremental capex while management raised 2026 Adjusted EBITDA guidance and lowered capex guidance. Fundamentally, its 62-site carrier-neutral portfolio, 1,700+ customers, 428MW contracted capacity, $1.1B of available liquidity, and a fixed-rate debt stack at a 5.4% weighted average coupon create a credible path toward deleveraging from 8.4x net leverage.

Csquare is viewed negatively because its legacy telco and former Cyxtera/Evoque assets still carry structural execution risk, while guided churn of 8-10% is high and 2025 churn of 7.9% included “non-regrettable” legacy customer losses. The balance sheet also looks stretched, with pro forma leverage of 8.7x post-IPO and interest expense expected to remain a major drag at about 27% of revenue in 4Q2026E, leaving little room for EBITDA misses. In addition, 33%, 21%, and 14% of 2025 ARR roll off in 2026, 2027, and 2028, while some facilities are already contracted at up to ~150% of sellable power, increasing churn, service, and refinancing risk.